Developments in the Islamic finance industry in the last two decades have significant impact on both economies of Muslim geography and global financial markets.
The Financial Crisis Inquiry Report (FCIC, 2011) concludes, inter alia, that dramatic failures of corporate governance and risk management at many systematically important financial institutions coupled with a systematic breakdown in accountability and ethics were responsible for the financial crisis of 2008-10. Banking system globally halted during crisis but Interest-free Banks were not exposed and none of them needed government recapitalization. In this regard, Chapra (2010b) document that the resiliency of the Interest-free Banks was tremendous during crisis.
Baitul Maal Wat Tamwil (BMT) combines both the business function (tijaroh) and charity function (tabarru’). The Baitul Maal raises the charity funds by collecting
Despite the heightened discussion on the importance of good governance in the development of Islamic Financial Institutions (IFIs), the type of governance indicators that may be applied to IFIs has rarely being discussed. More importantly, the need to measure the quality of corporate governance (CG) using a disclosure index is undeniably pertinent. Accordingly, this study attempts to develop a CG disclosure index from a stewardship perspective for IFIs.
We examine the determinants of default in conventional and Islamic banks in Middle and Far Eastern countries. Our analysis is based on both accounting and macroeconomic data for the period (1995-2010) with a total of 421 banks from 20 countries. We adopt survival analysis approaches; namely the non-parametric Kaplan-Meier estimator and the semi-parametric Cox proportional hazards model. Our findings show that the hazard profile of Islamic banks is different than conventional banks with the former being about 64% less hazardous.
There is substantial evidence that the development of the discipline of Islamic Economics is currently in crisis. In this article we argue that the main reason for this is that most
Understanding stakeholders’ perception towards corporate social responsibility (CSR) is useful when entering the market particularly when serving the needs of particular stakeholders. This study examines the perception of
Given the phenomenal increase in Islamic banking activities globally, it is important that there exists good governance practices of Islamic financial institutions (IFIs). This is primarily to ensure its sustainability in the long run. More importantly, in order for Islamic banks to play an optimum role in the development of Islamic countries, it is pertinent to develop regulatory structures to control fraud, exploitation, and un-Islamic behaviour.
The present study was conducted to investigate the impact of the Cooperative (Islamic) Microfinance program on the standard of life of the poor and marginalized segments in the areas under study. Islamic microfinance program of Islamic Relief-Pakistan was taken as a model of cooperative microfinance. Primary, cross sectional data about 400 respondents (300 clients and 100 non-clients) has been collected through a detailed questionnaire, from the urban slums of Rawalpindi i-e Naseerabad , Qasimabad and Dhok Mustaqim.